In some instances yes, and that is why we have teamed up with some of the best attorney’s in the nation to help homeowners fight back against the banks, and have their rights and laws explained to them clearly. I started doing short sales in 2004, and at that time many banks forgave almost every homeowner for the difference (deficiency) between what was owed and what the homeowner sold the home for. But in the past year and some months, different banks have taken the position that they will no longer forgive homeowners for this deficiency amount, and it has become a legal battle between the homeowner and the banks attorneys to get this amount forgiven. Real estate agents, including myself are not always qualified to deal with the banks legal department to get this deficiency waived. Case and state statutes need to be assessed and debated with the legal department, and many times BK needs to be threatened or filed in order to get the bank to bend, I as a real estate broker am not qualified to do this.
So while some banks are forgiving people this deficiency amount, other are not, and it is imperative that you work with a real estate broker who knows which banks are doing this and have alliances with attorneys who can help you. If you would like a free hour consultation with an attorney that specializes in this area, please call me and I will arrange everything for you.